Credit Card Authorization Process

Does the Issuing Bank make the funds available to the credit card network immediately at authorization? Or is funding sometime after the authorization?

It's available as soon as they give you the credit card.

2009-03-20 08:20:45 by P K

See how a credit card authorization works in SAP Business ByDesign

When a bank denies authorization on an online credit card transaction don't they have to alert the account holder of the credit card? In this situation the bank for the account on the credit/debit card withheld authorization of payment on an order because they determined that the vendor was suspect. Seems they ( the vendor) have had complaints about multiple transactions etc. being processed. I applaud being proactive on the safety side of online shopping, however the bank never notified the account holder that their payment had been denied. In fact, it was only because the ordered item never arrived that the situation was even looked into.

I thought that any action by a financial institution that affected an account had to be documented in writing and sent to the account holder as means of explanation.

Does the bank- or in this case the credit union have the right to NOT notify an account holder of refused authorizations or have they been negligent?

They do not have to notify the card holder just the merchant trying to initiate the transaction. It always comes down to money...the merchant is most always charged a flat rate- usually about 15 to 20 cents for trying to just charge/debit the card. The card holder is charged nothing in your case and so no notification is then required. Had the transaction been completed by a known suspect merchant or the sale was very high for that vendors average sale then the credit union that issued the card would need to contact you.

2006-05-20 21:48:49 by lolachikadee

I am looking for the lowest current rates for Credit Card Processing. Who has them and what are the rates. I am a Sign Business owner. Been in business for 10 years. I know the fees consist of at least the following: Monthly Maint. Fee, Transaction fees for Visa & Mastercard (which is a percent of sale), Fee per authorization. We do also process American Express and our customers are asking that we offer Discover. We do not have the credit cards in hand, so, we will be keypunching in the card numbers for approval.

Without the card in hand, you'll probably be doing what's called MOTO (Mail order telephone order), and therefore paying the highest rates of 2-3%.

Make sure they're honest with you about the surcharges for accepting corporate or business cards.

Watch out for batch header fees. Make sure they're completely disclosing all fees.

Another thing that gets a lot of people is called a cancellation fee. This means you get charged upwards of $500 for switching away if their service sucks. Technically, that fees supposed to be illegal, but what AG wants to prosecute banks with more money than god?

No matter what they say, you can usually negotiate on things like the fees, or minimums, or at least the cost of equipment.

You're welcome to private message me at my blog
blogcharmdawtcawmslashnostate if you'd like the names of some friends of mine in the industry.

Good luck!

2007-08-13 17:32:42 by Joe D

How the process of making a payment/refund to a credit card account actually works? I know how the money withdrawal process works (bank authorization, etc), but the whole refund process is a bit of a mistery.

I am primarily interested in the case when the company making you the payment/refund is located abroad, and the credit card is a major, international brand. But it would be also good to know if a regular person (i.e. not a company) could make payments TO somebody's credit card too?

Actually, I guess the real question is - is the credit card number a regular, internationally-recognised bank account, and anyone can make payments to it?

Thanks.

As long as the merchant is able to process payments for the same large international brand, such as VISA or Mastercard they are able to process a credit. The merchant in most cases only needs to know the actual account number to process the credit. But keep in mind, the credit card is not a bank account used to transfer money into and out of it. Say the credit does not come through, you will only be able to dispute the item if the merchant has actually processed a debit first. Anyone can set up a Paypal account with a bank account or credit card and they would be able to process a payment to your major credit card.

2006-12-27 14:29:46 by Darko

Hannaford, headquartered in Scarborough, Maine, said it became aware of unusual credit card activity on February 27 and began an investigation. It said the data was illegally accessed during the credit card authorization process.

It's the second sentence.

"It said the [pieces of] data were illegally accessed during the credit card authorization process." But THIS has a problem too. Let me try it again.

"The company explained that someone illegally accessed the data during the credit card authorization." THERE you go!

2008-03-18 02:28:57 by Mista Ricksta